Business & Market Intelligence

Pre-money Valuation of VC-backed Startups Reaches $18.5 million in 2006, Highest Since 2000

The
median pre-money valuation of U.S. venture-backed companies reached $18.5
million in 2006, compared to $15 million in 2005, according to VentureOne
data. This is the highest median valuation since the peak of $25.1 million
in 2000.

In Europe, the overall median pre-money
valuation increased from EUR4 million in 2005 to EUR5.6 million last year,
according
to VentureOne data.

Other U.S. Highlights:

The median pre-money valuation for
later-stage financings of U.S. technology companies rose to $33
million in 2006, up from $29 million the year before.

The median pre-money first-round
valuation in 2006 nudged to $6.2 million from $5.9 million in 2005.

U.S. health care companies raised
later-stage rounds at a median pre-money valuation of $49.5 million in
2006, up from $40 million in 2005.

U.S. health care startups in
early-stage valuations inched up to $5.2 million last year from $5
million in 2005.